(i) The Company's investment properties consist only of free hold land and therefore no depreciation is chargeable.

The Company's investment properties consist of six properties in the nature of freehold land in India. As at 31 March 2024 and 31 March 2023, the fair value of the properties is INR 2,181.64 million and INR 1,886.80 million respectively. These are based on valuations performed by independent valuers for the purposes of bank financing at the time availing/renewing such financing facility. These valuers are registered valuers as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair value hierarchy is at level 2, which is derived using the market comparable approach based on recent market prices without any significant adjustments being made to the market observable data. (Refer Note 36(b) for note on fair value hierarchy).

(i) The value of investment in Kalyan Jewelers Inc. is INR 31.10 only as at 31 March 2023 on account of the standalone financial statements being rounded off to the nearest INR millions, the above item is presented as ‘0.00' million.

(ii) The Company has complied with the number of layers prescribed under clause 87 of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 during the current year and previous year.

(i) There are no loans or advances in the nature of loans granted to promoters, directors, KMPs and the related parties other than those disclosed in this note.

(ii) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other persons or entities, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries other than the loan given during the previous year to its subsidiary Kalyan Jewellers FZE, UAE (intermediary) which has in turn advanced the funds to another subsidiary Kalyan Jewellers LLC, UAE (ultimate beneficiary) where the same was utilised for working capital purpose as under:

(i) Pursuant to a Confirmation Order dated 07 August 2019 under Section 233 of the Companies Act, the Regional Director, Ministry of Corporate Affairs, Chennai had confirmed the scheme of amalgamation between Kalyan Jewellers Mini Stores Private Limited and Kalyan Jewellers India Limited and consequent to that the authorised capital of the Company was increased to INR 14,005 divided into 1,20,05,00,000 equity shares of INR 10 each and 20,00,00,000 compulsorily convertible preference shares of INR 10 each. During the year ended 31 March 2021, the authorised share capital was further increased to INR 20,005 divided into 1,80,05,00,000 equity shares of INR 10 each and 20,00,00,000 compulsorily convertible preference shares of INR 10 each pursuant to the Initial Public Offering.

(ii) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares. The ordinary equity shares are entitled to receive dividend as declared from time to time after payment of dividend to preference shareholders. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to shareholders' share of the paid-up equity capital of the Company. Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid. Failure to pay any amount called up on shares may lead to forfeiture of the shares.

On winding up of the Company, the holders of equity shares will be entitled to receive the residual assets of the Company, remaining after distribution of all preferential amounts in proportion to the number of equity shares held.

(v) Nature and purpose of other reserve

Securities premium: Securities premium is used to record the premium received on issue of shares. It is utilised in accordance with the provisions of the Companies Act, 2013.

Retained earnings: Retained earnings are the profits / loss that the Company has earned / incurred till date, less any transfers to other reserves, dividends or other distributions paid to its equity shareholders.

Employee stock option reserve represents the reserve created towards equity-settled employee stock options.

Items of other comprehensive income consists of effective portion of gain and loss on designated portion of hedging instruments in a cash flow hedge and remeasurement of net defined benefit liability/asset.

(i) Details of interest rate and securities provided for loans repayable on demand from various banks

(a) Charge on the entire current assets of the Company viz. raw materials, stocks in process, finished goods, trade stocks, receivables and other current assets (excluding deposits kept as cash margins towards specific facilities sanctioned by banks on paripassu basis with the member bank(s) in the working capital consortium. (b) Personal guarantees by Promoter Directors - Mr.T.S. Kalyanaraman, Mr.T.K Seetharam, Mr.T.K Ramesh and their relatives N.V.Ramadevi and T.K.Radhika (c) Certain land and buildings belonging to the Company and Promoter Directors - Mr.T.S. Kalyanaraman, Mr.T.K Seetharam, Mr.T.K Ramesh and their relatives N.V.Ramadevi and T.K.Radhika are offered as collateral

security to the working capital consortium. (d) Rate of interest for short-term borrowings is variable and is depending on the prevailing MCLR/T Bill rates plus spread as per the sanction letter with respective banks and the interest charged by the banks in the consortium starts from 8.00% per annum payable on monthly intervals.

(ii) Details of supplier factoring arrangements - unsecured

Supplier factoring arrangements dues represents bill discounting facility availed with bank. The facility is unsecured and the term of bill discounting facility ranges from 90 days to 180 days with interest ranging from 8% per annum to 8.15% per annum.

(iii) There are no defaults in the repayment of principal or interest to lenders as at 31 March 2024 and 31 March 2023.

(iv) The Company has utilised the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date and previous year end.

(v) There are no creation of charges or satisfaction of charges yet to be registered with ROC beyond the statutory period for current year and previous year.

(vi) he Company has not been declared as a 'wilful defaulter' by any bank or financial institution.

(vii) The Company has working capital limit exceeding INR 50 million during the year and the Company has submitted quarterly statement of identified current assets to the bankers, and there are no differences between the amounts as per books and amounts reflected in the statements.

(viii) Also refer Note 18 with respect to metal gold loan

(i) Represents amounts payable against gold purchased from various banks under gold on loan scheme with variable interest rates ranging from 2.25% to 3.75% (previous year 2.25% to 4.25%) payable at monthly intervals. The credit period under the aforesaid arrangement is 180 days from the date of delivery of gold. The security details are as disclosed in Note 15 (i) for loans repayable on demand.

(i) There are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006 ('Act') which is on the basis of such parties having been identified by the management and relied upon by the auditors. Hence, disclosures relating to amount unpaid as at year end together with interest paid/payable under this Act have not been given. Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

(ii) The average credit period on purchases (other than from micro enterprises and small enterprises) is normally 90 days. No interest is charged on the trade payables. The Company has financial risk management policies in place to ensure that payables are paid within the pre-agreed credit terms.

(iii) Trade payables ageing schedule

(iii) Additional disclosure as per Ind AS 115

a) Disaggregation of revenue information

The table below presents disaggregated revenues from contracts with customers by offerings and contract type. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of its revenues and cash flows are affected by industry, market and other economic factors.

(i) Expenditure towards Corporate Social Responsibility (‘CSR’)

The total expenditure incurred on CSR activities during the year ended 31 March 2024 is INR 69.15 million (31 March 2023 - INR 47.83 million). This includes INR 47.30 million (31 March 2023 - INR 18.70 million) being unspent amount pertaining to ongoing project. This has been transferred to 'Unspent CSR account' within 30 days from the end of the financial year, in accordance with CSR rules.

(a) The Company is executing a multi-year ongoing infrastructure project through its implementing agency Kalyan Jewellers Foundation and has transferred an amount of INR 51.30 million (31 March 2023: INR 33.50 million) as current year allocation to the project and is proposed to be utilized within a period of three years.

(b) Apart from the multi-year ongoing project, the CSR activities under taken by the Company consists of numerous projects and contributions towards promoting health care, promoting education, eradication of poverty, rural development projects and women empowerment.

31 SEGMENT INFORMATION

The Chief Operating Decision Maker (CODM) of the Company examines the performance from the perspective of the Company as a whole viz. 'jewellery business' and hence there are no separate reportable segments as per Ind AS 108.

There are no material individual markets outside India and hence the same is not disclosed for geographical segments for the segment revenues or results or assets. During the year ended 31 March 2024 and 31 March 2023 respectively, revenue from transactions with a single external customer did not amount to 10 percent or more of the Company's revenues from the external customers.

(i) Future cash flows in respect of the above matters are determinable only on receipt of judgements/ decisions pending at various forums/authorities. Management is hopeful of successful outcome in the appellate proceedings. Disputed tax dues are appealed before concerned appellate authorities. The Company is advised that the cases are likely to be disposed off in favour of the Company and hence no provision is considered necessary therefor.

34 EMPLOYEE BENEFIT PLANS (a) Defined contribution plans

The Company makes contributions to provident fund and employee state insurance schemes which are defined contribution plans, for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of the payroll cost to fund the benefits. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes and the company has no obligations beyond its contributions. The contributions recognised in the statement of profit and loss during the year are as under

(b) Defined benefit plans

The Company offers gratuity benefits, a defined employee benefit scheme to its employees. The said benefit plan is exposed to actuarial risks such as longevity risk and salary risk. The Company has not funded its gratuity obligations. The following table sets out the status of the defined benefit schemes and the amount recognised in the standalone financial statements as per the actuarial valuation done by an independent actuary.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The mortality rates considered are as per the published rates in the Indian Assured Lives Mortality (2006-08) Ult table.

36 FINANCIAL INSTRUMENTSCategories of financial instruments

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments. The details of material accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised in respect of each class of financial asset, and financial liability are disclosed in Note 2(xvii).

Quantitative disclosures fair value measurement hierarchy

The derivative instruments in designated hedge accounting relationships is measured at fair value at level 1, with valuation technique being use of market available inputs such as gold prices and foreign exchange rates.

37 FINANCIAL RISK MANAGEMENT OBJECTIVE

The Company's activities expose it to a variety of financial risks. The Company's primary focus is to foresee the unpredictability of such risks and seek to minimise potential adverse effects on its financial performance.

The Company has a robust risk management process and framework in place. This process is coordinated by the Board, which meets regularly to review risks as well as the progress against the planned actions. The Board seeks to identify, evaluate business risks and challenges across the Company through such framework. These risks include market risks, credit risk and liquidity risk.

The management assessed that fair values of cash and cash equivalents, trade receivables, other financial assets, trade payables and other financial liabilities recorded at amortised cost is considered to be a reasonable approximation of fair value.

Following methods and assumptions were used to estimate fair values:

Fair values of the Company's interest-bearing borrowings are determined by using EIR method using discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The own non- performance risk as at reporting date was assessed to be insignificant.

(b) Fair value hierarchy

The Company uses the following hierarchy for determining and/or disclosing the fair value of financial instruments by valuation techniques. The three levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).'

Market risk - price risk

The Company is exposed to fluctuations in gold price (including fluctuations in foreign currency) arising on purchase/ sale of gold. The Company's business objective includes safe-guarding its earnings against adverse price movements of gold as well as foreign exchange risks.

The Company has adopted a structured risk management process to hedge all these risks within an acceptable risk limit and an approved hedge accounting framework which allows for fair value hedges/ cash flow hedges, as designated at the inception of the hedge. The forward contracts which are not designated as above are marked to market at each balance sheet date and corresponding gain/ loss is recognised in the Statement of Profit and Loss. The risk management strategy against gold price fluctuation also includes procuring gold on loan basis, with a flexibility to fix price of gold at any time during the tenor of the loan. The Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

Interest rate sensitivity analysis:

The sensitivity analysis below have been determined based on the exposure to interest rates for non derivative instruments at the reporting date. For floating rate borrowings, the analysis is prepared assuming the amount of liability outstanding at the reporting date was outstanding for the whole year. The impact on the Company's profit if interest rates had been 50 basis points higher/lower and all other variables were held constant:

Market risk - Foreign exchange

The Company is exposed to foreign exchange risk arising from foreign currency transactions with subsidiaries, primarily with respect to Arab Emirates Dirhams (AED). Foreign exchange risk arises from recognised assets and liabilities denominated in a currency that is not the Company's functional currency. Exposures to foreign currency balances are periodically reviewed to ensure that the results from fluctuating currency exchange rates are appropriately managed.

Foreign currency sensitivity analysis

The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive number below table an increase in profit where the INR strengthens 10% against the relevant currency. For a 10% weakening of the INR against the relevant currency, there would be an equal and opposite impact on profit and equity. The following table details the Company's sensitivity to a 10% increase and decrease in the INR against the relevant AED receivables and USD Payables.

(ii) Assets

The Company's financial assets are carried at amortised cost and are at fixed rate only. They are, therefore, not subject to interest rate risk since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or pay amounts due to the Company causing financial loss. It arises from cash and cash equivalents, deposits with banks and financial institutions, security deposits, loans given and principally from credit exposures to customers relating to outstanding receivables. The Company's maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at reporting date.

In respect of trade and other receivables, the Company is not exposed to any significant credit risk exposure to any single counterparty or any company of counterparties having similar characteristics. Credit risk on receivables is limited as the nature of the business is cash and carry except for franchisee partners where there is adequate controls in place. The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired to be good.

Therefore, the Company does not expect any material risk on account of non performance by any of the Company's counterparties.

The credit risk for cash and cash equivalents, bank deposits, security deposits and loans is considered negligible, since the counterparties are reputable organisations with high quality external credit ratings.

Liquidity risk

The Company requires funds both for short-term operational needs as well as for long-term expansion programmes. The Company remains committed to maintaining a healthy liquidity ratio, deleveraging and strengthening the balance sheet. The Company manages liquidity risk by maintaining adequate support of facilities from its holding company, and by continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The Company's treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The Company's financial liability is represented significantly by long term and short term borrowings from banks and trade payables. The maturity profile of the Company's short term and long term borrowings and trade payables based on the remaining period from the date of balance sheet to the contractual maturity date is given in the table below.

(iii) Capital management

The Company's capital management objectives are

- to ensure the Company's ability to continue as a going concern

- to create value for shareholders by facilitating the meeting of long term and short term goals of the Company

The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic expansion plans. The funding needs are met through equity, cash generated from operations, long term and short term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents and other bank balances (including non-current earmarked balances)

Note (i) - The Company has investments only in the equity shares of subsidiaries and there are no dividends or other returns from the subsidiaries for the current year and previous year as such the disclosure of this ratio is not applicable to the Company.

39 LEASES

(i) The Company has taken building premises on lease from various parties for operating its showrooms. The leases typically run for a period of 5 years to 15 years. Refer Notes 4 and 16 for movement of right-of-use assets and lease liabilities and the amounts recognised in the statement of profit and loss. The maturity analysis of undiscounted contractual cash flows pertaining to these leases is given below:

40 During the year ended 31 March 2023, the Company renegotiated with certain landlords on the rent reduction / waiver due to the Covid-19 pandemic. The Management believes that such reduction / waiver in rent is short-term in nature and also meets the other conditions specified in the notification issued by the Central Government in consultation with National Financial Reporting Authority dated 24 July 2020 as Companies (Indian Accounting Standards) Amendment Rules, 2020 with effect from 01 April 2020. Thus, in accordance with the said notification, the Company has elected to apply exemption as the reduction / waiver does not necessitate a lease modification as envisaged in the Standard by recording in the “Other income” (net of rent expenses). Accordingly, the Company has recognised INR 6.43 million during the previous year (nil in the current year) in the Statement of Profit and Loss.

41 The Company has transactions or balances during current year with following companies whose names have been struck off by Registrar of Companies.

As per Ind AS 102, “Share-based Payment”, stock options have to be fair valued on the grant date and expense has to be recognised over the vesting period. The Company has accordingly determined the cost of the employee share-based payments considering the fair value principles. The charge on account of options granted to the employees of subsidiary is recovered from the subsidiary.

46 The Board of Directors of the Company has recommended a final dividend of INR 1.20 (12%) per equity share of INR 10 each for the financial year ended 31 March 2024 (previous year - INR 0.50 (5%)), subject to the approval of shareholders.

47 Approval of financial statements: The standalone financial statements were approved for issue by the board of directors on 10 May 2024.

ESOP expense amounting to INR 9.65 million (previous year - Nil) has been cross-charged to subsidiary

company, and the total ESOP expense for the year as per Note 26 is net of this cross-charge.

43 OTHER STATUTORY INFORMATION:

i) The Company does not have any Benami property and there are no proceeding initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

ii) The Company has not traded or invested in crypto currency or virtual currency during the current year and previous year.

iii) There Company does not have any transactions which are not recorded in the books of accounts that have been surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 during the current year and previous year.

iv) There are no Schemes of Arrangements which are either pending or have been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the current year and previous year.

v) No funds have been received by the Company from any persons or entities, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

44 During the year ended 31 March 2023, pursuant to the approval of the Board of Directors on 31 March 2023, the Company had taken a decision to dispose off the two aircrafts owned by the Company as part of management's overall strategy to dispose off non-core assets and accordingly, the carrying value of the aircrafts amounting to INR 1,671.61 million had been reclassified from property, plant and equipment to 'Assets held-for-sale' in accordance with Ind AS 105 - 'Non-current Assets Held for Sale and Discontinued Operations'. The estimated fair value of these aircrafts based on firm letter of intent from prospective buyers amounted to INR 1,339.10 million and accordingly, the difference between the carrying value and the fair value amounting to INR 332.51 million had been accounted for during the previous year as an exceptional item by virtue of its non-routine nature. The Company has obtained the approval from the Director General of Civil Aviation (DGCA) to complete the disposal. Subsequent to the year end, the Company has sold one of the aircrafts at the agreed consideration. As at 31 March 2024, the Company has received an amount of INR 1,103.08 million as advance towards the sale of the aircraft (Refer Note 21).

45 The Company has used accounting software for maintaining its books of account for the year ended March 31, 2024 which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that audit trail feature was not enabled at the database level to log any direct data changes. The management is evaluating different options to comply with the requirements.